I completely agree with you regarding our current tax-and-spend practices; but I think the flaw is not with taxation, but rather with corrupted democratic practices, both in the culture, and in the electoral-industrial complex. If government was truly an extension of public will, we would have mechanisms to pressure it to spend efficiently in ways that create infrastructure and jobs (operating system : software :: government : businesses).

Now, there's a case to be made that such corruption is inevitable, that power will always overwhelm the public good, and that distributed self-governance simply can't work. I think that view is merely born out of cynicism and a feeling of powerlessness, and it betrays a lack of imagination. If the enlightenment revolutionaries had thought that way, we'd likely still have nobles and kings.